TL;DR
Toys for Bob, the studio behind the Spyro Reignited Trilogy and Crash Bandicoot 4, bought its independence from Microsoft in 2024 to "get back to the games we were known for." This move signals a strategic shift away from supporting large franchises like Call of Duty and back toward character-driven platformers, a genre Microsoft has largely neglected since acquiring Activision Blizzard.
What Happened
Paul Yan, studio head of Toys for Bob, told Kotaku that the studio's 2024 exit from Microsoft was driven by a desire to escape the "Call of Duty mines" and return to making the whimsical, family-friendly games that defined its identity. The studio, which had been folded into Activision Blizzard and later Microsoft Gaming after the $68.7 billion acquisition, spent years providing support work on the annual Call of Duty franchise instead of developing its own titles.
Key Facts
- Toys for Bob was founded in 1989 and became best known for developing the Spyro Reignited Trilogy (2018) and Crash Bandicoot 4: It's About Time (2020).
- The studio was acquired by Activision in 2005 and became part of Microsoft Gaming following Microsoft's $68.7 billion acquisition of Activision Blizzard in October 2023.
- In February 2024, Microsoft announced layoffs affecting 1,900 employees across its gaming division, with Toys for Bob being one of the studios hit — though it survived as a smaller team.
- Paul Yan said the studio bought its independence from Microsoft in 2024, meaning it is now a wholly independent developer free from corporate ownership.
- Since gaining independence, Toys for Bob has announced a partnership with Xbox to publish its next game, suggesting Microsoft retains some commercial relationship despite the studio's structural independence.
- The studio's last major non-support title was Crash Bandicoot 4, released in 2020 — a gap of over five years in original, self-led development.
- Microsoft has not announced any new platformer IP or major family-friendly game since acquiring Activision Blizzard, focusing instead on Call of Duty, World of Warcraft, Diablo, and Candy Crush.
Breaking It Down
Toys for Bob's escape from Microsoft is a rare case of a studio buying its way out of a corporate parent — and an even rarer case of that parent agreeing to let it go. Most studios acquired by Microsoft (like Bethesda, Obsidian, or Ninja Theory) remain fully owned. That Microsoft allowed Toys for Bob to purchase its independence suggests the company saw limited strategic value in retaining a small, platformer-focused team that didn't fit its live-service or blockbuster shooter roadmap.
"We spent years in the Call of Duty mines" — Paul Yan's phrasing captures the reality that Toys for Bob had become a support studio for a franchise it didn't create and didn't control. Between 2021 and 2023, the studio contributed to Call of Duty: Vanguard, Call of Duty: Modern Warfare II, and Call of Duty: Warzone — all while its own beloved IPs like Spyro and Crash sat dormant. For a studio whose last original platformer was released in 2020, the creative frustration was palpable.
The timing of the independence is also critical. Microsoft's gaming division has been under intense cost-cutting pressure. In 2024 alone, the company laid off 2,500 employees across its gaming units, closed Tango Gameworks (creator of Hi-Fi Rush), and canceled several projects. Toys for Bob's small size — likely fewer than 100 employees after the layoffs — made it an easy candidate to sell off rather than integrate further. Microsoft gets a small cash infusion, avoids ongoing payroll costs, and retains a publishing partnership for the studio's next game. It's a pragmatic exit for both sides.
What Comes Next
Toys for Bob's first independent game is expected to be announced within the next 12 months. The studio has said it is partnering with Xbox for publishing, meaning the game will likely launch on Xbox Series X|S, PC, and Game Pass on day one — but potentially also on PlayStation 5 and Nintendo Switch 2, given the studio's history with multiplatform releases.
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Watch for the game's genre and IP: Toys for Bob is almost certainly returning to 3D platformers. The question is whether it will create a new IP or revive a dormant franchise like Spyro — which remains owned by Activision/Microsoft — or Crash Bandicoot, which is also owned by Microsoft. A new IP would be the safest bet for an independent studio.
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Watch for the publishing deal's exclusivity terms: If the game is a timed exclusive on Xbox platforms, that signals Microsoft still values the franchise. If it launches day-one on PlayStation and Nintendo, that signals Toys for Bob negotiated full multiplatform freedom.
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Watch for hiring announcements: Toys for Bob is currently hiring for multiple roles, including game designers and engineers. The size of its team will indicate the scope of its next project — a small team suggests a mid-budget title, while a larger team suggests a AAA return.
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Watch for other Activision studios following suit: Tango Gameworks was closed, not sold. But if Toys for Bob's independence proves successful, other small teams within Microsoft's portfolio — like Raven Software or Beenox — might seek similar arrangements.
The Bigger Picture
This story reflects two broader trends in gaming. Studio Independence — The era of endless consolidation may be giving way to a counter-trend of studios regaining autonomy. As large publishers prioritize live-service games and blockbuster sequels, smaller creative teams are increasingly seeking freedom to make mid-budget, character-driven titles. Toys for Bob joins Housemarque (bought back from Sony?), Moon Studios (independent after Ori), and Frogwares (independent after Sherlock Holmes) as examples of studios choosing independence over corporate safety.
Platformer Renaissance — The platforming genre, long considered niche by AAA publishers, is experiencing a resurgence. Astro Bot (2024) sold over 3 million copies. Crash Bandicoot 4 sold over 5 million. Sonic Frontiers sold over 3.5 million. The audience for polished, family-friendly 3D platformers is larger than most executives believe. Toys for Bob is betting its future on that audience — and on the idea that Microsoft and Activision were wrong to sideline it.
Key Takeaways
- [Independence was purchased]: Toys for Bob bought its freedom from Microsoft in 2024, a rare move for a studio inside a major publisher. The cost was undisclosed but likely modest given the studio's reduced size.
- [Call of Duty support was the problem]: The studio spent years as a support team for Call of Duty, not developing its own platformers. Yan's "Call of Duty mines" quote captures the creative frustration of that era.
- [Xbox remains a partner]: Despite leaving Microsoft, Toys for Bob will publish its next game through Xbox. This suggests a commercial relationship persists, but without corporate ownership.
- [Platformers are back]: The success of Astro Bot, Crash 4, and Sonic Frontiers proves the 3D platformer audience is large and underserved. Toys for Bob is positioned to capitalize on that demand.
